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PRESS RELEASE: Sun Residential Real Estate Investment Trust Announces TSXV Conditional Approval and Filing of Filing Statement for Its Qualifying Transaction

| Quelle: Dow Jones Newsw... | Lesedauer etwa 7 min. | Text vorlesen Stop Pause Fortsetzen

DGAP-News: Sun Residential Real Estate Investment Trust / Key word(s):
Sun Residential Real Estate Investment Trust Announces TSXV Conditional
Approval and Filing of Filing Statement for Its Qualifying Transaction

2020-01-25 / 02:53
The issuer is solely responsible for the content of this announcement.

Toronto, Ontario(Newsfile Corp. - January 24, 2020) - Sun Residential Real
Estate Investment Trust (TSXV: SRES.P) ("*Sun*"), a capital pool company (as
such term is defined in Policy 2.4 (the "*CPC Policy*") of the Corporate
Finance Manual of the TSX Venture Exchange ("*TSXV*")), is pleased to
announce that it has received conditional approval from the TSXV for the
closing of its Qualifying Transaction (as such term is defined in the CPC
Policy) and that it has filed a filing statement in connection therewith.

Sun's Qualifying Transaction involves the acquisition of a controlling
interest in a Tallahassee, Florida-based multi-family residential property
(the "*QT Property*") for an aggregate purchase price of approximately
US$11.0 million (the "*Acquisition*"). The QT Property was built in 2018 and
is located one mile from Southwood, a master-planned community centred
around the Southwood Golf Club and the 127-acre Central Park. The QT
Property comprises a total of 12 buildings having three or four floors each
and a total of 288 units, with 278,664 sq ft of net rentable area. The
average apartment is 968 sq ft and the average rent per unit is US$1,209 per
month. The QT Property currently has a 98.3% occupancy. The purchase price
in respect of the Acquisition is expected to be satisfied in cash from the
proceeds of the brokered and non-brokered private placements (as described
further below).

Sun expects to close the Qualifying Transaction on or about January 28,
2020. Upon completion of the proposed Qualifying Transaction, Sun is
expected to meet all the minimum listing requirements for a Tier 1 Real
Estate Issuer. The filing statement is available under Sun's profile on
SEDAR at www.sedar.com.

In connection with the Acquisition, Sun expects to complete a brokered
private placement of a minimum of 70,130,435 and a maximum of 102,048,130
trust units of Sun ("*Units*") on a best-efforts agency basis at a price of
C$0.115 per Unit for gross proceeds between approximately C$8,065,000 and
C$11,735,535. Sun has engaged Raymond James Ltd. as lead agent in respect of
the brokered private placement pursuant to an amended and restated
engagement letter dated November 25, 2019. Under the terms of the Engagement
Letter, the agents will be entitled to an aggregate cash fee equal to 10.0%
of the aggregate gross proceeds of the brokered private placement. Sun also
expects to complete a non-brokered private placement of a minimum of
32,478,261 and a maximum of 93,604,044 Units at a price of C$0.115 per Unit
for gross proceeds between approximately C$3,735,000 and C$10,764,465 to
investors identified by Sun. Closing of the brokered and non-brokered
private placements is conditional upon, and is expected to occur
substantially concurrently with, the closing of the Acquisition. All Units
issued in connection with the brokered and non-brokered private placements
are subject to a statutory four-month and one day hold period.

Following the Acquisition, Sun intends to carry on business as a real estate
investment trust focused on acquiring additional multi-family residential
properties located in the "Sunbelt" region of the United States. Such
acquisitions may include a strategic vend-in transaction between Sun and an
affiliate of Westdale Galesi Partners, LLC, the vendor in respect of the
Acquisition, of a portfolio of 37 additional multi-residential real estate
assets, such assets representing an aggregate of approximately 10,693
residential housing units, in a single or a series of transactions, for a
purchase price which is to be based on the fair market value of such assets,
payable in Units or exchangeable limited partnership units of Sun, the terms
of which are and remain subject to negotiation and to the approval of, as
applicable, the TSXV, securities regulators and Sun unitholders. As
discussed in greater detail in the filing statement, this potential vend-in
transaction is the subject of one of the buy-sell triggers pursuant to the
buy-sell agreement which will be entered into between, among others, a
subsidiary of Sun and Westdale Galesi Partners, LLC on the closing of the
Qualifying Transaction. There can be no assurances that a definitive
agreement, or any agreement at all, in respect of such a transaction will be
entered into and no representation is made to that effect.

Sun's head office address is 901-1 King St. W., Toronto, Ontario M5H 1A1.

For more information please contact:

Gordon Wiebe
Chief Executive Officer
Sun Residential Real Estate Investment Trust
Email: gwiebe@corpfincapital.ca

The information in this press release includes certain information and
statements about management's view of future events, expectations, plans and
prospects that constitute forward looking statements. These statements are
based upon assumptions that are subject to significant risks and
uncertainties. Because of these risks and uncertainties and as a result of a
variety of factors, the actual results, expectations, achievements or
performance may differ materially from those anticipated and indicated by
these forward-looking statements. Forward-looking statements in this press
release include, but are not limited to, the ability of Sun to complete the
Acquisition (or any future acquisitions) and the brokered and non-brokered
private placements. Any number of factors could cause actual results to
differ materially from these forward-looking statements as well as future
results. Although Sun believes that the expectations reflected in
forward-looking statements are reasonable, it can give no assurances that
the expectations of any forward-looking statements will prove to be correct.
Except as required by law, Sun disclaims any intention and assumes no
obligation to update or revise any forward-looking statements to reflect
actual results, whether as a result of new information, future events,
changes in assumptions, changes in factors affecting such forward-looking
statements or otherwise.

_Neither TSX Venture Exchange Inc. nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange Inc.)
accepts responsibility for the adequacy or accuracy of this release._

_Completion of the Acquisition and the brokered and non-brokered private
placements is subject to a number of customary conditions. There can be no
assurance that the Acquisition will be completed as proposed or at all._

_Investors are cautioned that, except as disclosed in the filing statement,
any information released or received with respect to the Acquisition may not
be accurate or complete and should not be relied upon. Trading in the
securities of a capital pool company should be considered highly

_The TSX Venture Exchange Inc. has in no way passed upon the merits of the
proposed Acquisition and has neither approved nor disapproved the contents
of this press release._

The offered Units will not be registered under the United States Securities
Act of 1933, as amended (the "*U.S. Securities Act* ") and may not be
offered or sold within the United States or to or for the account or benefit
of U.S. persons, except in certain transactions exempt from the registration
requirements of the U.S. Securities Act. This press release does not
constitute an offer to sell, or the solicitation of an offer to buy,
securities of Sun in the United States.


To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/51818 [1]

Click on, or paste the following link into your web browser,to view the
associated documents http://www.newsfilecorp.com/release/51818
News Source: Newsfile

2020-01-25 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
Language: English
Company: Sun Residential Real Estate Investment Trust

ISIN: CA86687A1066
EQS News ID: 961059

End of News DGAP News Service

961059 2020-01-25

1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=ed82fa2c7027b2e255e6c0b38bc80795&application_id=961059&site_id=vwd&application_name=news

(END) Dow Jones Newswires

January 24, 2020 20:53 ET ( 01:53 GMT)

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